Successful Free Value Investing (Sg, Us, Uk)

[csl123]

i would suggest that you start by reading annual report of those companies surrounding you. Like Vicom for your car inspection, Breadtalk if you buy food from them, CapitalMall if you go shopping. To gain an idea of business instead of share prices. Read the discussion on this forum is helpful also.

At one point when you are familiar with a few companies business, and financial figure, and price is not too high (measure by PE, PEG or dividend yield), start with smaller amount, increase the money when you are comfortable.

It may take months or years for the above process depend on people, but don't jump into it after doing it for only weeks. it will be painful to move too fast.

Paper trading for me is meaningless, key successful factor for value investing is mindset, without real money, you would not be able to test your mindset. You need to have the ability to overcome the situation that share price drop 50% for a great business, and newspaper, friends, TV and etc all tell you that tomorrow is the end of capitalism, but you still spend thousands of money to buy more. Then you are successful value investor.

Just to add, IMO, it doesn't take great IQ to carry out value investing. More importantly, we have to understand how we behave and be MENTALLY discipline when investing. To be more specific, we have to understand how to deal with loss aversion, large market volatility, external influence by analysts/business partners and poor investment decisions. Critically, poor mental discipline can result in losses just as much as poor valuation skills.

[dxdx]

You can try the tradehero app for paper trading. It follows the market in almost real time (a lag by about 2 hours), so the ups and downs of your portfolio are clearly reflected. I think its useful because it helps prep you for the volatility, esp in penny stocks.